Budgeting

Fundamentals

• Key Concepts:

• Fiscal Year and Timeline

• FOAP and Index

• Fund structure

• Account structure

• Transactions

• Budgets

• FAQs

2

• Fiscal Year: July 1 to June 30

• Fiscal Year examples:

• FY14: July 1, 2013 to June 30, 2014

• FY15: July 1, 2014 to June 30, 2015

• Fiscal Periods:

• Period 01 = July

• Period 02 = August

• Period 03 = September

• Period 04 = October

• Period 05 = November

• Period 06 = December

• Period 07 = January

• Period 08 = February

• Period 09 = March

• Period 10 = April

• Period 11 = May

• Period 12 = June

• Period 13 = not used

• Period 14 = Accrual Period

3

• Periods 1-3 (July-September)

• The prior fiscal year (FY) is closed-out.

• The Budget and Salary Increase Process Survey is administered.

• Periods 4-6 (October-December)

• Initial budget assumptions (i.e. tuition rates) are developed.

• Periods 7-9 (January-March)

• The Board of Trustees approves budget assumptions.

• Detailed budget allocations are prepared by the Controller’s Office.

• Compensation data is prepared by Human Resources (HR).

• Incremental budgets are distributed to the VPs/Deans by March 1st.

• Compensation worksheets and Budget Summaries are prepared.

• Periods 10-12 (April-June)

• Budgets are submitted to the Controller’s office by April 1st.

• Final budgets are submitted to the Board of Trustees for approval.

• Approved budgets are loaded into Banner and available for review.

• Confirmation Sheets for annual increases are generated in Cognos for

review and approval by the Deans/VPs and turned into HR.

• Automated PAFs and annual increase letters are created by HR for

annual salary increases.

*Budget Manager Meetings are held periodically.

4

Fund: a five digit code that identifies the source of the money

• Examples: operating budget, designated, sponsored project, etc.

Organization: a four digit code that identifies the department spending the

money

• Examples: English, Admissions, Finance, Biology, etc.

Account: a four or five digit code that identifies the type of revenue,

expenditure, or transfer

• Examples: postage, office supplies, travel, printing, etc.

Program: a three digit code that identifies the general purpose

• Examples: Educational and General, Administrative, Student Aid, etc.

5

• For ease of use, an Index has been created for

each Fund/Organization/Program (FOP)

combination so you need only remember it and

the appropriate account.

• The Index is usually the same number as the

fund and automatically provides the FOP string.

• Example: 91080 Comptroller

• Fund: 91080 Comptroller

• Organization: 1080 Accounting Systems

& Budgeting

• Program: 101 Administrative

6

• Revenue indexes include the account (FOAP)

• Start with “8” followed by 5 digits

• Term is indicated by the last digit

• Example: 813901: Test & Prof Serv Fees

• Fund: 91390 Counseling Center

• Organization: 1390 Counseling Center

• Account: 51390 Testing Svc Fee-Stdt

• Program: 901 Fall Term

7

• Designated funds: 1XXXX

• Funds are often tied to true endowments (donor designated) or quasi

endowments (board designated)

• Unused funding rolls to the following fiscal year

• Deficits must be funded with an operating surplus or other designated funds

• Sponsored Project funds: 3XXXX

• Unused funding rolls to the following fiscal year for the duration of the project

• Deficits must be funded with an operating surplus or designated funds

• Endowment funds: 4XXXX

• Funding from a non-budget source such as donations

• Funding has specific purpose and is required to be used within those

guidelines

• Funds are invested by the University to produce income to be spent from the

corresponding designated funds

8

• Building, Equipment, and R&R funds: 5XXXX

• 59XXX: Unexpended Plant funds

• 57XXX: Renewal and Replacement (R&R) funds

• Unused funding rolls to the following fiscal year

• These funds cannot be charged directly but should be used to fund capital

projects referenced below

• Research Institute (UDRI) funds: 6XXXX and 6 digit alpha-numeric

• Funding comes from contracts/grants and an overhead cost rate that is

applied to contracts

• The overhead rate proposal is prepared every 2 years, audited by the

Defense Contract Audit Agency (DCAA), and negotiated with the Office of

Naval Research (ONR)

• Capital Project funds: 7XXXX

• Unused funding rolls to the following fiscal year for the duration of the project

• Deficits must be funded with an operating surplus, designated funds, or

building funds

9

• General Operating funds: 9XXXX

• These funds are budgeted annually for the daily operation of the department

• 91XXX – Administration

• 92XXX – Instruction

• 96XXX – Facilities

• 97XXX – Auxiliaries

• 98XXX - Student Aid

• Surpluses are used to cover deficits in designated, sponsored project, and

capital project funds; the remaining surplus amount is transferred to the

Provost or Vice President to determine use/distribution

In order to set up a new fund, a Fund Request Form must be completed, signed,

and submitted to the Controller’s office for processing.

https://www.udayton.edu/finadmin/controller/resources.php

10

• Revenue: 5-digit numbers (not used with every fund)

• “51XXX” – Tuition income

• “53XXX” – Sponsored Project income

• “56XXX” – Miscellaneous income

• “57XXX” – Auxiliary income

• Expenditure: 4-digit numbers

• “6XXX” – Labor and Benefit expenses

• Generally used only by Human Resources & Payroll

• “7XXX” – Non-labor expenses (i.e. supplies)

• Transfer: 5-digit numbers

• Always begin with “8”

• Used to move money between funds

In order to correct an account charged incorrectly, a Request for Change of Account

form must be completed, signed, and submitted to the Controller’s office for

processing. https://www.udayton.edu/finadmin/controller/resources.php

11

• Monthly Journal Entries (JE) or Budget Transfers (BR): FYMMXXX

• 2 digit fiscal year, 2 digit month, 3 digit numerical sequence

• Example: 1510123 for an October entry

• Call the Controller’s Office with questions x92941

• Invoices paid through Accounts Payable to outside vendors

• 2 digit initials: CH/SD/ES, 3-5 digit numerical sequence

• Example: CH1234

• Call Accounts Payable with questions x93646

• Purchase card transactions: YYMM092

• 2 digit fiscal year, 2 digit month, 092

• Example: 1510092 for an October transaction

• Call Deb Liptak with questions x92632

12

• Accounts Receivable, Cash Receipts, Student Aid: FXXXXXX

• “F” (indicates feed document), 6 digit numerical sequence

• Example: F123456

• Call the Bursar’s Office with questions x94111

• Travel transactions: SMXXXXXX

• 2 digit initials: SM, 6 digit numerical sequence

• Example: SM123456

• Call Shirley Mahoney with questions x57316

13

• Educational and General (E&G)

• Basic instructional and administrative budgets supported by tuition

• 91XXX, 92XXX, 96XXX, 98XXX, i.e. Facilities

• Basic University Fee (BUF)

• Student activity related budgets supported by tuition (i.e. RecPlex)

• Fees are no longer charged to students separately but are included in

the total tuition charge

• Fee revenue is distributed via JE by the Controller’s office after tuition

has been reconciled (each semester)

• Auxiliary and Quasi-Auxiliary

• Self-supporting entities with income that do not directly relate to

instruction

• Some make a profit and may be required to contribute to the University

• 97XXX, i.e. Athletics, Dining Services, Bookstore

• University of Dayton Research Institute (UDRI)

• Self-supporting mainly through government grants and contracts

14

A: Accurate

Coding

THE ABC’S

Campus-wide reporting depends on accurate coding by all

departments.

Pick the account that most closely matches the purchase. You can

code to accounts even if you do not have budget allocated to that

line.

A Chart of Accounts can be accessed in Finance Self Service. A

document will be on the Controller’s webpage in the near future.

B: Bottom

Line

You do not have to stay within budget in every line. However, you

should not spend more than the department total.

Use your spending history to refine your budget next year.

C: Check

Regularly

Monitor your budget on a regular basis. Contact the Controller’s

Office with any questions as mistakes in coding can occur.

You will be able to more effectively manage your budget and

avoid possible overages if you aware of the status throughout the

fiscal year.

15

Budget Report by User Funds Division - General Fiscal Period - Year To Date 2015

Fund Fund

Description

Account Account Description Budget Current

Month

Actual

YTD Activity Encumbrances Remaining Balance

9XXXX Example 6010 Faculty/Prof Research - Ft 0.00 0.00 7,164.33 0.00 (7,164.33)

6013 Administrative-Full-Time 628,811.00 0.00 104,801.84 0.00 524,009.16

6030 Clerical-Technical 224,605.00 0.00 29,305.93 0.00 195,299.07

6053 Undergraduate Students 6,779.00 0.00 1,824.53 0.00 4,954.47

6098 Staff Benefits - Faculty/Staff 378,917.00 0.00 62,724.78 0.00 316,192.22

6099 Staff Benefits - Students 136.00 0.00 36.49 0.00 99.51

7120 Advertising 0.00 0.00 123.50 0.00 (123.50)

7215 Contract Serv-U.D. Maintenance 0.00 0.00 35.00 0.00 (35.00)

7590 Cash Over and Short 40.00 0.00 0.00 0.00 40.00

7600 Periodicals/Nwspaper,Dept Book 178.00 0.00 99.00 0.00 79.00

7640 Postage, Postage Meter 17,750.00 0.00 1,774.89 0.00 15,975.11

7650 Printing for Distribution 4,000.00 0.00 0.00 0.00 4,000.00

7800 Office Supplies 16,950.00 0.00 138.75 0.00 16,811.25

7809 General Supplies 0.00 0.00 1,099.93 0.00 (1,099.93)

7810 Photo Copying 1,400.00 0.00 0.00 0.00 1,400.00

7819 General IT Supplies 4,500.00 0.00 18.58 0.00 4,481.42

7830 Telephone - Long Distance 160.00 0.00 19.26 0.00 140.74

7831 Telephone - Monthly Service 7,100.00 0.00 1,175.20 0.00 5,924.80

7832 Telephone - Local Calls 280.00 0.00 21.68 0.00 258.32

7833 Facsimile Service 170.00 0.00 0.00 0.00 170.00

7870 Travel-Staff 0.00 0.00 403.00 0.00 (403.00)

9XXXX 1,291,776.00 0.00 210,766.69 0.00 1,081,009.31

16

Personnel Services

Staff Benefits

Supplies &

Expenses

Funds are committed to

pay a purchase order

Budget

– YTD Activity

– Encumbrances

Remaining Balance

Expense coded to

7215 even though

not budgeted in

that account

1. When should I contact the Budget Office?

• You see a transaction in your budget that you do not understand or

recognize.

• You need a transfer to be processed (journal entry or budget revision).

• You are having difficulty managing your budget and may want to reallocate

funding.

2. May I reallocate budget during the year?

• Yes, please contact the Controller’s Office to discuss.

• Budget revisions done during the year are considered temporary;

therefore, these adjustments will need to be made during the next annual

budgeting process in order to make them permanent.

3. How do I obtain additional budget money?

• The Vice President/Dean of each Division controls the operating budget

funding in his/her Division.

17

4. How do I access and review funds?

• UDIT/Communication & Collaboration/Porches/Guides, Manuals & Movies

1. Banner: Finance Self Service Guide

2. Cognos: Cognos Basic Overview

5. How timely is the data in Finance Self Service and Cognos?

• Any entry posted into the Banner ledger is available in Banner Self-

Service in the same day, but Cognos Reporting is on a one-day lag. There

are two important exceptions to remember:

1. Charges for postage, copier, phone, etc. are posted monthly, usually

within 5 business days of the following month from when the charge

was incurred.

2. Purchase card transactions are also posted monthly. Due to a

cardholder review of purchases and account use, Purchase Card

transactions post by the 10th of the following month.

6. When can I run Month End Reports?

• Each month should be final on or about the 10th of the following month

with the exception of fiscal year-end.

18

• Please let us know if you have feedback:

o Recommendations for more effective communication and training

o Topics/agenda ideas for future Budget Manager meetings

• Please contact us with any questions, concerns, or comments:

o Christine Comer, Director of Financial Planning and Budgets, x93495

o Kathleen Berger, Budget Analyst, x92935

19